On December 31, 2017, Berclair Inc. had 320 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. On March 1, 2018, Berclair purchased 24 million shares of its common stock as treasury stock. Berclair issued a 5% common stock dividend on July 1, 2018. Four million treasury shares were sold on October 1. Net income for the year ended December 31, 2018, was $350 million. The income tax rate is 40%.

Also outstanding at December 31 were incentive stock options granted to key executives on September 13, 2013. The options are exercisable as of September 13, 2017, for 30 million common shares at an exercise price of $56 per share. During 2018, the market price of the common shares averaged $70 per share.

In 2014, $62.5 million of 8% bonds, convertible into 6 million common shares, were issued at face value.

Required:

Compute Berclair’s basic and diluted earnings per share for the year ended December 31, 2018.

Sharp Focus Technology Ltd (Sharp) manufactures and sells three models of camera. Sales revenue and direct costs for November of 2019 are shown as follows: Model Beginner   Intermediate Pro-level

Units produced and sold 400 200 100

Unit selling price $6,000 $15,000 $33,000 Direct materials $700,000 $1,600,000 $1,820,000 Direct labour $600,000     $750,000 $840,000 Machine hours consumed 300 90 60

Manufacturing overhead incurred in the month includes the following: Activity $ Engineering 300,000 Quality control 298,500 Machinery 751,500 Materials handling 300,000

-------------- 1,650,000.

The company adopts a simple costing system by allocating the manufacturing overhead based on the machine hours which are used to manufacture the three models.

Sharp’s CEO recently has learned that an activity-based costing system can provide more accurate cost information through analysing how the products use the activities during the operating processes. The following data were collected from operations in the quarter: Activity Cost driver Beginner Intermediate Pro-level Engineering No. of engineering hours 6 10 24 Quality control No. of inspection hours 36 120 204 Machinery No. of machine hours 300 90 60 Materials handling No. of orders 5 5 20

Required:

a ) Prepare a product line income statement showing the profitability % of each model: i using the current simple costing system ii using the activity-based costing system Show all workings clearly.

b) Compare and explain the differences in profitability of the three product models under both product costing systems. What are the implications for Sharp’s pricing strategy?

1. The term “cost” is simply puzzling to people who do not have a background
in accounting.
Explain the following
(a) Cost Driver
(b) Cost Function
(c) Cost Object

1.Provide the differences between a weighted-average method of process costing and a first-in, first-out (FIFO) method of process costing

Prepare general journal entries for the following transactions of Norman Company, assuming they use the allowance method to account for uncollectible accounts. Apr 01 Sold $3,500 of merchandise to Lance Co., receiving an 8%, 90-day, $3,500 note. 15 Wrote off $1,500 owed by Guy Co. from a previous period sale. 30 Received a $5,000, 6%, 30-day note receivable from James Co. as settlement for its $5,000 account receivable. May 30 The note received from James on April 30 was collected in full. Jun 30 Lance Co. was unable to pay the note on the due date. Jul 15 Guy Co. paid $1,000 of the amount written off on April 15.

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company’s products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data: Product Demand Next year (units) Selling Price per Unit Direct Materials Direct Labor Debbie 62,000 $ 20.50 $ 5.50 $ 3.60 Trish 54,000 $ 7.00 $ 2.30 $ 1.32 Sarah 47,000 $ 34.00 $ 8.24 $ 7.20 Mike 56,000 $ 15.00 $ 3.20 $ 4.80 Sewing kit 337,000 $ 9.20 $ 4.40 $ 0.72 The following additional information is available: The company’s plant has a capacity of 84,160 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five products. The direct labor rate of $12 per hour is expected to remain unchanged during the coming year. Fixed manufacturing costs total $640,000 per year. Variable overhead costs are $3 per direct labor-hour. All of the company’s nonmanufacturing costs are fixed. The company’s finished goods inventory is negligible and can be ignored. Required: 1. How many direct labor hours are used to manufacture one unit of each of the company’s five products? 2. How much variable overhead cost is incurred to manufacture one unit of each of the company’s five products? 3. What is the contribution margin per direct labor-hour for each of the company’s five products? 4. Assuming that direct labor-hours is the company’s constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? 5. Assuming that the company has made optimal use of its 84,160 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)?

1. Discuss the advantages of having budgets as a primary management control tool.

Kelly Industries issued 11% bonds, dated January 1, with a face value of $100,000 on January 1, 2018. The bonds mature in 2028 (10 years). Interest is paid semiannually on June 30 and December 31. For bonds of similar risk and maturity the market yield is 12%. What was the issue price of the bonds?

3. a long time family friend owns a small business. this friend has promised to sell you his business for $75,000 when he retires in 8 years. assuming that you can earn 7% on your money, how much will you need to save each year for the ext 8 years to have $75,000 when your friend retires?

Accounting job is impacted. what do you do to get a job that field after graduation from the University?

What is my future plan as an accountant? (2 page essay on it).

On January 1, 2009, General Bell Corp. issued at 97, 8% bonds with a par value of $800,000, due in 10 years. Interest is payable semiannually on June 30 and December 31 of each year. In addition General Bell incurred bond issue costs totalling $16,000. 3 years after the issue date, on January 1, 2012, General Bell calls the entire issue at 101 and cancels it. General Bell amortizes discounts/premiums, using the straight-line method.

Required:

1) Record the necessary journal entries on:

a. January 1, 2009

b. June 30 and December 31, 2009

c. January 1, 2012

2) Assume that the bond was sold on March 1, 2009 for the same price as above plus accrued interest and record the necessary journal entries on:

a. March 1, 2009

b. June 30 and December 31, 2009

c. January 1, 2012

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 64,000 pounds. The subsidiary immediately borrowed 150,000 pounds on a five-year note with 6 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 214,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,100 pounds per month. By year-end, rent payments totaling 81,000 pounds had been received, and 16,200 pounds was in accounts receivable. On October 1, 2,600 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,950 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow:

January 1, 2017 $ 2.20 = 1 Pound
October 1, 2017 2.25 = 1
December 31, 2017 2.28 = 1
Average for 2017 2.24 = 1

Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts into U.S. dollars.

Required information

[The following information applies to the questions displayed below.]

Marcelino Co.'s March 31 inventory of raw materials is $88,000. Raw materials purchases in April are $570,000, and factory payroll cost in April is $391,000. Overhead costs incurred in April are: indirect materials, $52,000; indirect labor, $29,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $53,000. The predetermined overhead rate is 50% of direct labor cost. Job 306 is sold for $635,000 cash in April. Costs of the three jobs worked on in April follow.

4.1 Compute gross profit for April.

4.2 Show how to present the inventories on the April 30 balance sheet.

Here is the proprietary fund transactions and statements to be completed.

As of July 1, 2016, the City of Saratoga Springs decided to purchase a privately operated swimming pool and to create a Swimming Pool (Enterprise) Fund. During the year, the following transactions occurred:

1.    A permanent contribution of $ 1,200,000 was received from the General Fund.

2.    $ 1,000,000 was borrowed with a Note Payable from a local bank at an interest rate of 6%. The note was dated July 1, 2016 and interest is paid on 6/30 each year.

3.    Purchased for cash several items, the cost breakdown was: land, $300,000; building, $600,000, land improvement, $400,000; equipment, $300,000; supplies, $190,000.

4.    Charges for services amounted to $720,000, all received in cash.

5.    Cash expenses included: salaries, $275,000; utilities, $140,000; interest (paid on 6/30/2017), $60,000.

6.    Supplies were consumed in the amount of $120,000.

7.    Depreciation was recorded for: building, $30,000, land improvement, $40,000; equipment, $30,000.

8.    The books were closed. Close all accounts to Net Position.

?            Required:

1.    Record the above transactions in general journal form (on the books of the swimming pool fund).

2.    Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Fund Net Position for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30, 2017.

3.    Prepare, in good form, a Statement of Fund Net Position for the City of Saratoga Springs Swimming Pool Fund as of June 30, 2017.

4.    Prepare, in good form, a Statement of Cash Flows for the City of Saratoga Springs Swimming Pool Fund for the Year Ended June 30, 2017. Assume all of the revenue bonds payable are for capital-related acquisitions and that the transfer was to establish working capital (i.e. a non-capital-related purpose).